Gilpatric Consulting, LLC

12/10/2024

Is an Appraisal the same thing as a Home Inspection?

An appraisal is a valuation of the property's market value by an independent, licensed professional known as the appraiser. This is not to be confused with a home inspection report. A home inspector is there to examine the condition of the home to make sure there no major defects, NOT to assess the value of the home based off other comparable homes recently sold.

Usually during the start of the home buying process the lender will schedule an appraiser to review the home along with comparable homes in the area and generate a full report on the value of the subject property. They will need to schedule this visit with the sellers so they can inspect, measure, and take photos of the home. An appraisal not only protects the lender's investment, but also protects you, the buyer.

This does not mean they *always* get it right - and there are steps to take when needing an appraisal appealed, with each lender having their own process of how to approach this.

It also doesn't mean you cannot purchase the home if value comes in lower than the agreed upon price. In today's market, many buyers have made the decision to continue the purchase and pay the "appraisal gap" out of pocket since their loan is based on the lower of price and appraised value. There are numerous ways was can restructure your loan to still try and make the deal work. The biggest question becomes how much of a gap is acceptable for you?

If you would like more information about the appraisal process or how to creatively deal with an appraisal gap, just let me know.

07/31/2024

If we have worked with you in the past and are willing to offer a professional review, please click on the link below. Gilpatric Consulting appreciates our customers and their positive feedback as we continue to grow as a company. As always, your referrals are our bread and butter and we can't thank you enough! Sincerely, Eric and Christine.

11/15/2021

Know the difference

Is an Appraisal the same thing as a Home Inspection?

An appraisal is a valuation of the property's market value by an independent, licensed professional known as the appraiser. This is not to be confused with a home inspection report. A home inspector is there to examine the condition of the home to make sure there no major defects, NOT to assess the value of the home based off other comparable homes recently sold.

Usually during the start of the home buying process the lender will schedule an appraiser to review the home along with comparable homes in the area and generate a full report on the value of the subject property. They will need to schedule this visit with the sellers so they can inspect, measure, and take photos of the home. An appraisal not only protects the lender's investment, but also protects you, the buyer.

This does not mean they *always* get it right - and there are steps to take when needing an appraisal appealed, with each lender having their own process of how to approach this.

It also doesn't mean you cannot purchase the home if value comes in lower than the agreed upon price. In today's market, many buyers have made the decision to continue the purchase and pay the "appraisal gap" out of pocket since their loan is based on the lower of price and appraised value. There are numerous ways was can restructure your loan to still try and make the deal work. The biggest question becomes how much of a gap is acceptable for you?

If you would like more information about the appraisal process or how to creatively deal with an appraisal gap, just let me know.

11/15/2021

"In truth, human appraisers fill two vitally important roles today, (1) we collect information and (2) we analyze it so it can be presented to our clients."

05/16/2021

When bidding on a home, is it worth it to offer more than a house is worth?

Offering to pay thousands of dollars over the asking price for a home, even if a formal appraisal determines it is worth less, can make a buyer more competitive in this housing market, but it also …

11/17/2019

Home appraisals are a piece of the selling process where you may have to let go of the reins. But Here are some things sellers can do to smooth the way.

08/20/2019

Real talk...

Realtor's language is “local” whereas an appraiser's language is universal... What we got here is ... failure to communicate. It’s a line from Cool Hand

08/20/2019

Our page has reached 100 likes!

08/20/2019

Funny, but maybe remove them before the open house!

Learn how to use household items and salvaged materials to make new homes for your plants, vegetables and flowers.

08/19/2019

For all my new first time home owners:

In this how-to video, learn lawn mowing tips from This Old House landscape contractor Roger Cook

08/18/2019

Yes, animals living in your home can hurt resale value 😢🐶

Many homebuyers love dogs but don’t always love the results of having a dog (or two) in the house. Here are a few ways to reduce the downsides of pet ownership while enjoying all the perks.